Transportation Reform

A Contribution to the development of Cambodia

Tin Sokhavuth

Cambodian map with the detail of rivers and main roads. (Photo: supplied)

Cambodia maybe is the only country that allows foreign partners to be involved in developing the country via one of its political programs, the so-called “Partnership in Development.” This policy is encouraging development partners such as Asian Development Bank (ADB), World Bank (WB), United Nations Development Programme (UNDP), NGOs and donor countries to participate directly in development in close cooperation with local people and/or local government.

In the field, most of development partners agree that after nearly two decades of civil war, Cambodia needs to rebuild and modernize its transportation system that was almost completely destroyed by wars.

Roads and railways are the backbone for transportation in Cambodia while the inland port in Phnom Penh and the coastal port in Sihanoukville also play an important role in contributing to economic growth. The three airports situated in Phnom Penh, Siem Reap and Sihanoukville mostly serve to increase the number of tourists coming to visit the Kingdom of Wonder.

There are only two railroads in Cambodia. The Phnom Penh-O Choeuv railroad is 386 km long. It connects the Phnom Penh capital with O Chroeuv commune in Poi Pet town in Banteay Meanchey province on the border with Thailand. This railroad passes through Pursat and Battambang provinces and used to connect with Thai railroad at the border, but it was cut off from the Thai railroad in the late 40s due to the conflicts between the two countries.

The Phnom Penh-Sihanoukville railroad is 266 km long and connects Phnom Penh to Sihanoukville by crossing Takeo and Kampot. It was built with help from Australia, France, West Germany and China between 1965 and 1969.

According to its National Strategic Development Plan, the Royal Government of Cambodia (RGC) wants to restore and expand the existing railroad network in order to cut down the cost of transportation, to reduce traffic accidents and to connect with neighboring countries with the goal of promoting bilateral trade.

However, the railroad network is now being restored, and the rail service from Phnom Penh to Sihanoukville was reopened in October 2010. According to the ADB, the principal goods to be transported by railroad are cement, petroleum and containers.

The ADB also pointed out that to attract private sector investment, the RGC should put in place laws and regulatory frameworks, and a good governance system is also required.

On the other hand, trade and economic development also depend on transportation system – insufficient access and expensive transport services restrict the development and poverty reduction in Cambodia.

According to the ADB, the primary road network is 2,263 km of paved roads connecting the country to its neighboring countries; the secondary national roads are 3,360 km, most of which are unpaved and 6,441 km of provincial unpaved roads. In addition to these roads, the RGC has the ambition to have 4,1000 km of paved roads by 2015.

The Ministry of Public Works and Transport, in cooperation with other 10 development partners, is managing an investment program with the total amount of $2,706 million over five years (2014-2017) for the construction of roads and bridges in the kingdom. The high priority was given to 15 projects with the total amount of $803 million, of which $500 million will be for the construction of a new railway link to Vietnam.

As for 40,000 km of rural roads, it is the Ministry of Rural Development that manages them. These rural roads are covered with earth or laterite; they are 77 percent of the total road network.

From the ADB’s point of view, the local materials for paving the road are often of poor quality. So, the roads need to be repaired every three years. On the other hand, the lack of border exit facilities slows down trade and passenger traffic. However, cross border facilities exist at Trapang Kreal and Bavet, and the construction of two other border facilities are in progress at Lork and Prey Var at the border with Vietnam.

“There is stakeholder interest in building a railway from Thailand to Viet Nam … To achieve this, a new railway line is required from Phnom Penh to the northeast border ... It is anticipated that private finance will be required because of the high cost involved ($500 million–$600 million),” the ADB said.

The ADB added that there are 1,750 km of inland navigable waterways in Cambodia, but the navigation is only possible along 580 km. The primary usage of those waterways is to transport petroleum, containers and general cargo. Besides that, Phnom Penh and Sihanoukville ports are also being upgraded to the international standard.

As for the airports, Phnom Penh and Siem Reap airports provide access for 1.5 million tourists whose amount of money spent for their trip in Cambodia is equal to one-third of Cambodian’s gross domestic product, according to the ADB.

Some of the ADB’s criticism about the transportation sector is low private sector participation, lack of connectivity to services and markets, and incomplete and inefficient transport infrastructure networks, especially for railways and provincial and rural roads.

To help Cambodia reform its transportation system, the ADB invests the total amount of $272 million in rural development and private sector growth. The result was satisfactory and successful, because travel times and vehicle operating cost were reduced, and there has been strong economic growth. At the same time, the ADB is also focusing on the rehabilitation of the provincial road networks since 2008.

ADB is seeking to connect transportation infrastructure in order to grow other sectors such as agriculture, and to connect rural poor areas to markets and service by building good rural and provincial roads. The ADB is also paying more attention to the engagement of the private sector in transportation reform in Cambodia.